SanDisk Corporation (Nasdaq: SNDK), the Milpitas, California-based maker of flash memory storage solutions, had an impressive year in 2013, with shares rising nearly 58 percent. As they say, ‘Great years are followed by good years,’ and with shares up over 6.5 percent in 2014, SNDK investors seems to concur with this sentiment.
SanDisk is scheduled to report earnings after the market close on Wednesday, with analysts projecting EPS of $1.58 per share on revenue of $1.70 Billion. Historically, SanDisk is a big earnings mover, with shares moving an average of 7.1 percent following earnings news. SanDisk tends to perform strongly, moving upward 3 of the past 4 and 6 of the past 8 quarters. The company has also beat earning by over 20 percent for the past 3 quarters. The near-term 73.5 and 74 straddles are both implying a move slightly above the average, 7.4 percent.
My Trade: Buy the SNDK Feb 75 Calls for around $1.95
Risk: $195 per 1 Lot
Reward: Theoretically Unlimited
Break-even at expiration $76.95
